Momentus sets price for $5 million stock and warrant offering

SAN JOSE, Calif. - Momentus Inc. (NASDAQ: NASDAQ:MNTS), a U.S. commercial space company whose stock has declined over 71% in the past year according to InvestingPro data, has announced the pricing of its stock and warrant offering with a single institutional investor. The offering includes the sale of 1,273,886 shares of common stock or equivalents and warrants to purchase up to an additional 1,273,886 shares at a combined purchase price of $3.925 per share and warrant. The warrants are exercisable at $3.80 per share, effective immediately, and will expire five years from the initial exercise date.

The closing of the offering is anticipated to occur on or about February 11, 2025, contingent on meeting customary conditions. Momentus expects to raise approximately $5 million gross from this offering before accounting for placement agent fees and other estimated expenses. This fundraising comes at a critical time, as InvestingPro analysis shows the company is quickly burning through cash with a concerning current ratio of 0.38, indicating potential liquidity challenges. The net proceeds are intended for general corporate purposes, including advancing the company’s services.

A.G.P./Alliance Global Partners (NYSE:GLP) is serving as the sole placement agent for the transaction. The securities are offered through a registration statement on Form S-1, which was declared effective by the Securities and Exchange Commission (SEC) on February 10, 2025.

Additionally, Momentus has agreed to amend certain existing warrants to lower the exercise price to $3.80 per share, subject to stockholder approval. These include the Class A September 2024 Warrant, Class B September 2024 Warrant, October 2024 Warrant, and December 2024 Warrant, which will all be adjusted from their previous higher exercise prices. If stockholder approval is not obtained within six months from the issuance date, the exercise price will automatically reduce to the minimum price allowed by Nasdaq Listing Rule 5635(d), with the warrants expiring five years later.

This press release does not constitute an offer to sell or a solicitation of an offer to buy the securities, and the sale will not occur in jurisdictions where such an offer, solicitation, or sale would be unlawful prior to registration or qualification under the applicable securities laws.

Momentus, known for providing satellite buses and in-space infrastructure services, including transportation and hosted payloads, is making this information public based on a press release statement. While the company has achieved impressive gross profit margins of 85.48% and shows promising revenue growth of 30.47% over the last twelve months according to InvestingPro, which identifies 18 additional key investment insights for subscribers, the company cautions that forward-looking statements in the press release are not guarantees of future performance and are subject to various risks and uncertainties.

In other recent news, Momentus Inc. has been making significant strides in the commercial space industry. The company has secured an expanded contract with the Defense Advanced Research Projects Agency (DARPA) valued at approximately $3.5 million. This contract is for Phase 3 of the DARPA Novel Orbital and Moon Manufacturing, Materials, and Mass-efficient Design (NOM4D) program, which involves in-orbit assembly of large structures in space.

Additionally, Momentus has been selected by the U.S. Air Force Research Labs AFWERX organization to conduct an in-space demonstration flight featuring a new suite of low-cost multispectral sensors. These sensors are designed for Rendezvous and Proximity Operations (RPO), which are critical for various in-space activities such as satellite servicing and debris removal.

Furthermore, Momentus announced a new contract with SpaceX for a rideshare mission slated for early 2026. The mission will utilize Momentus’ Vigoride Orbital Service Vehicle (OSV) to transport payloads for the U.S. Department of Defense (DoD) and various commercial entities to Low-Earth Orbit (LEO).

In a move to strengthen its financial position, Momentus also announced an offering of 800,000 shares of common stock, along with warrants to purchase an additional 800,000 shares, at a combined price of $6.20 per share and accompanying warrant. The company anticipates gross proceeds of roughly $5 million from this offering.

These recent developments underscore Momentus’ commitment to pioneering solutions for national defense and commercial space initiatives. Please note that these are recent developments and are subject to change.

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